Clearstream, via its Russian agent Deutsche Bank Moscow, has successfully settled its first domestic government bond transaction on an OTC basis.
This transaction builds on a six year partnership between the two companies and represents a significant step forward in the liberalization of the Russian government bond market: Clearstream customers can now safe-keep Russian government bonds (OFZ bonds) in addition to Russian equities. The expansion of the service for Russia has been made possible by recent changes in the local securities market regulation.
Mark Gem, member of the Executive Board and head of Business Management at Clearstream, said: Clearstream was the first ICSD to establish a service for Russian equities. We have now again demonstrated our ongoing commitment to the market and the region: The fact that rouble-denominated bonds are eligible for triparty collateral use shows that we are taking a holistic approach to the evolution of the Russian bond market. We will continue to implement the positive market developments in Russia that will be phased in during the course of 2012.
Thibaud de Maintenant, global head of Direct Securities Services at Deutsche Bank, said: This is an important moment for the Russian economy and we are very happy to facilitate access to the local government bond market for a renowned international market participant such as Clearstream. We are delighted about this cooperation as it clearly demonstrates our strength in Eastern Europe and our dedication and commitment to the Russian market.
Clearstream has maintained a sub-custody relationship with Deutsche Bank Moscow since May 2006. In addition, Clearstream was the first ICSD to establish the Rouble as a settlement currency, using Deutsche Bank Moscow as its cash correspondent bank, following the introduction of the Currency Regulation Law in Russia in January 2007.
(JDC)